Category: general info

Categories
general info

Mass Housing Sales And Prices Surge In May

Jenifer’s Wednesday Globe article illustrates the growing confidence and underlying challenges with the Massachusetts housing market surge.

Mass. housing market continues to recover

By Jenifer B. McKim

|  GLOBE STAFF  JUNE 26, 2013

<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />

Home sales climbed 6 percent from May 2012, while the median home price increased by nearly 12 percent to $324,500, according to the Warren Group, a Boston company that tracks local real estate. It was the fourth consecutive month of double-digit price increases.

The housing recovery is accelerating as buyers — cognizant that home values are on the upswing — compete for a limited supply of properties, prompting bidding wars and huge increases in prices in many popular neighborhoods. Rising interest rates also are pressuring buyers to get into the market now.

While still historically low, the average rate on a 30-year mortgage has risen to about 4 percent from 3.6 percent a month ago, according to Inside Mortgage Finance, a Maryland-based trade newsletter.

“Prospective buyers have displayed a voracious appetite for real estate this year,” said Sam Schneiderman, president of the nonprofit Massachusetts Association of Buyer Agents. “Many buyers are finding themselves playing a game of ‘beat the clock’ to buy a house before rising prices and interest rates impact their ability to buy a home that they can afford.”

The recovery in Massachusetts reflects the strengthening housing market nationally as unemployment falls, incomes rise, and consumer confidence improves. The Commerce Department said Tuesday that US sales of new homes in May surged 29 percent from a year ago. S&P/Case-Shiller Home Price Indices, a well-reputed measure of the housing market’s health, reported an average price increase of about 12 percent in the 20 metropolitan areas the index tracks.

Home values in San Francisco surged 23.9 percent in April from April 2012, while Las Vegas values rose 22.3 percent, according to the Case-Shiller index. The Boston area experienced an 8.1 percent increase.

Karl E. Case, cocreator of the index, said appreciation in the Boston area appears to be moving at a sustainable pace. Home values in Boston peaked in 2005 and fell about 20 percent before hitting bottom in 2009, according to the index. They remain about 13 percent below their peak.

Case said he is concerned that other areas of the country, particularly California, may be heading toward another bubble. “There’s a bunch of exuberance out there,” Case said.

In Boston, tight inventories of homes for sale have pushed prices higher. The lack of homes on the market has also constrained sales: In the first five months of the year, sales in Massachusetts declined slightly from the same period in 2012, according to the Warren Group.

Many economists expect the strong price increases to moderate as more sellers put homes on the market and interest rates rise. “Buyers expecting home values to continue rising at this pace indefinitely may be in for a shock,” said Stan Humphries, chief economist for Seattle-based real-estate company Zillow.

Despite the improving economy and housing market, many struggling homeowners and renters are not benefiting from the housing recovery, said Eric Belsky, managing director for the Joint Center for Housing Studies at Harvard University.

The center is expected to release a report Wednesday that shows millions of US homeowners still behind on mortgages or owning homes worth less than the amount of their mortgages. The study will also note that banks are maintaining tight lender standards that are blocking would-be home buyers from loans while mortgage rates are low and prices reasonable.

“Tight credit is limiting the ability of would-be home buyers to take advantage of today’s affordable conditions and likely discouraging many from even trying,” said Chris Herbert, the center’s director of research.

Jenifer B. McKim can be reached at [email protected]. Follow her on Twitter @jbmcki

Categories
general info

Affordable Entry Level In Provincetown.

This is the 3rd in my series of reviews of the three key market segments in Provincetown. The $1M plus market, the mid-market and last but not least the affordable entry level market. The entry level market in Provincetown is the $200K to $400K price range. Buyers are constantly surprised at some of the great properties that are on the market in this price point.

73 properties sold between $200K and $400K in 2012, accounting for 34% of the total sold. The average property sold in this price range was a 1 bedroom, 1 bath with 620 square feet and a sales price of $314K. Surprisingly 6 of the 73 were single family properties. I have included 2 of those below. One at 130 Commercial St is known to anyone who knows the West End well. A sweet little box of a single family right on Commercial Street past Pleasant. It has been renovated into a wonderful little house! The other single family property shown is 32 Ships Way Road.

One of our favorite condos was a stand alone studio in the West End that we sold last year. It was on the corner of Atwood Street and W. Vine, in the rear of a 4 unit condo complex at 14 West Vine. (see pic) It had a loft bed, a gas wood burning stove, and a wonderful private fenced in garden patio. Another favorite was 75 Province Lands Road which was a 1 bedroom end unit that has full on water views of the moors and beyond.

 

14 W Vine St. #4, studio condo $310K
14 W Vine St. #4, studio condo $310K
75 Province Lands Rd #12, 1/1/ condo $398K
75 Province Lands Rd #12, 1/1/ condo $398K
233 Bradford St #7, 1/1 condo, $272K
233 Bradford St #7, 1/1 condo, $272K

 

 

 

 

 

 

 

62 Franklin St #3, 1/1 condo, $270K
62 Franklin St #3, 1/1 condo, $270K
130 Commercial St. 2/2 Single Family, $360K
130 Commercial St. 2/2 Single Family, $360K
32 Ships Way Rd. Single Family, 2/1, $390K
32 Ships Way Rd. Single Family, 2/1, $390K

 

 

 

 

 

 

 

 

Currently there are 52 properties on the market representing 33% of all properties being marketed for sale, of which 3 are single family properties. The average being a 1 bedroom, 1 bath  with 620 square feet with an asking price of $325K.   Below are 6 properties that are currently available.

23 Conant, 7 Webster are stand alone condos, with all the privacy that comes with that. 30 Bangs is at the end of Bangs Street across Bradford in a quiet private complex. 60 Race Road is a spacious 2 story townhouse with a full basement.

23 Conant St. 2/2 condo $329K
23 Conant St. 2/2 condo $329K
30 Bangs St. 2/2 condo, $349K
30 Bangs St. 2/2 condo, $349K
60 Race Point Rd. 2/2 condo, $395K
60 Race Point Rd. 2/2 condo, $395K

 

 

 

 

 

 

 

7 Webster Pl #1, 1/2 condo, $215K
7 Webster Pl #1, 1/2 condo, $215K
233 Bradford St #7, 1/1 condo, $272K
233 Bradford St #7, 1/1 condo, $272K
163 Bradford St #3, 1/2 condo $329K
163 Bradford St #3, 1/2 condo $329K

 

 

 

 

 

 

 

 

Year to date 29 condos have sold with sales prices in this range representing 47% of all properties sold so far this year. It’s a very busy segment of the market and you can see why when buyers have the choices like those shown below. The average condo sold was a 2 bedroom, 1 bath condo of 741 square feet selling for $303K. 

88 Bradford St is an end unit with vaulted ceilings and lots of private use outside space. 23 Conant is a cute stand alone condo in the near West End while 2 Mayflower is a charmer of a cottage in the woods in the far East End. 163 Bradford St #1 was bought by some very dear friends. It’s central location, 2 baths and extra room along with wonderful private use outside space made it a great value.

88 Bradford St. condo, 1/1, $312K
88 Bradford St. condo, 1/1, $312K
23 Conant St #5, condo 1/1, $252K
23 Conant St #5, condo 1/1, $252K
2 Mayflower Ave #3, condo 1/1, $217K
2 Mayflower Ave #3, condo 1/1, $217K

 

 

 

 

 

 

 

163 Bradford St #1, condo 1/2, $374K
163 Bradford St #1, condo 1/2, $374K
147 Commercial St #L3, condo, 1/1, $275K
147 Commercial St #L3, condo, 1/1, $275K
15 Court St #5, condo, 2/1, $388K
15 Court St #5, condo, 2/1, $388K

 

 

 

 

 

 

 

 

Hopefully this post has illustrated the incredible variety of properties in this price range. Buyers are always surprised at what their dollar can buy as they are always hearing about how expensive property is in town. It is a dynamic market segment with great variety of properties for sale.

 

 

Categories
general info

Buy Now?

One of my new favorite real estate blogs is KCM.  A great post below clearly illustrates the simple reasons that buying now may not be a bad idea. Don’t you love the perfect nuclear family pictured? They don’t look particularly happy. Just saying! I don’t normally post “buy now”, “sell now” articles but occasionally they organize information and provide a bit of national context to our own micro market here.

Buying a House: Is Now the Time?

by THE KCM CREW 

bored

The real estate community is often criticized for always seeming to have a Pollyanna attitude about the housing market. Many believe that the industry’s current call ‘to buy now’ is nothing more than a scare tactic with the sole purpose of creating more commissions for the industry. Let’s take a look at whether or not that advice was good advice over the last year.

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. According to the most recent Case-Shiller Home Pricing Index, home values have risen over 10% in the last year. If we look at Freddie Mac’sWeekly Primary Mortgage Market Survey®, the 30 year mortgage rate has increased from 3.67% to 3.91% during that same period.

The table below compares the cost of the same exact house over the last twelve months:

difference

We can see that the advice to buy a year ago made complete financial sense.

What About Moving Forward?

Most experts are not only calling for prices to continue to rise but are also upgrading their projections as the housing market is showing strong signs of recovering.

Regarding interest rates, the 30 year mortgage rate has soared by over a half point already this year and many believe that the increases will continue. Even those trying to be the voice of reason on this issue are projecting higher rates. For example, Polyana da Costa, senior mortgage analyst at Bankrate.com said:

“Rates are unlikely to keep going up so quickly and should remain below 5 percent.”

Bottom Line

The next time a real estate professional says that now is the time to buy they may not be giving you a ‘sales pitch’. They may be giving you nothing but excellent advice.

 

Categories
general info

Easy Mortgage Payment Chart.

Terrific post by Colin Robertson at TheTruthAboutMortgage.com

Use This Mortgage Payment Chart to Easily Compare Rates

 

Now that mortgage rates have gone absolutely haywire, I decided it would be prudent (and helpful) to create a “mortgage payment chart” that details the difference in monthly payment across a variety of interest rates.

So if you were quoted a rate of 3.5% on your 30-year fixed mortgage two weeks ago, but have now been told the rate is closer to 4%, you can see what the difference in monthly payment might be, depending on your loan amount.

Mortgage Payment Chart

Click to enlarge

My first chart highlights monthly payments at different rates for 30-year mortgages, with loan amounts ranging from $100,000 to $1 million.

I went with a bottom of 3.5%, seeing that mortgage rates were around that level about a month ago, and probably won’t return there (EVER).

However, there is the possibility that rates could drift back in that direction. And one might be able to buy their rate down to around that price, assuming they want an even lower rate.

For the high-end, I set interest rates at 6%, which is where 30-year fixed mortgage rates were for many years leading up to the mortgage crisis. With any luck they won’t return there anytime soon…

Of course, they could rise even higher over time, but hopefully rates won’t climb back to the double-digits last seen in February 1990.

That fear aside, this mortgage payment chart should give you a quick idea of the difference in payment across a range of interest rates and loan amounts, which should save some time fooling around with amortgage calculator.

Below is a mortgage payment chart for 15-year fixed mortgages, which are also quite popular.  I used a floor of 3% and a max rate of 5.50%.  Again, rates can and will probably climb higher, just hopefully not anytime soon.

15 Year Fixed Mortgage Payment Chart

Click to enlarge

For the record, you can obtain mortgage rates at every eighth of a percent, so it’s also possible to get a rate of 3.625%, 3.875%, 4.125%, 4.375%, and so on.

Tip: The lower the interest rate, the smaller the difference in monthly payment. As rates move higher, the difference in payment becomes more substantial.

On a $500,000 loan amount, the monthly payment difference between a rate of 3.5% and 3.75% is $70.36, compared to a difference of $77.93 for a rate of 5.25% vs. 5.5%.

Additionally, higher mortgage rates are more damaging to larger loan amounts. If you look at the 30-year chart, the payment on a $400,000 loan amount at 3.50% is cheaper than the payment on a $300,000 loan at 6%.

Lastly, note that my mortgage payment graph only lists the principal and interest portion of the mortgage payment.  You may also be subject to paying mortgage insurance and/or impounds each month. Property taxes and homeowner’s insurance are also NOT included.

You’ll probably look at this chart and say, “Hey, I can get a much bigger mortgage than I thought.”  But beware, once all the other costs are factored in, your DTI ratio will probably come under attack, so tread cautiously.

Categories
general info

What $560K Gets You.

What $560,000 buys you in Boston’s Back Bay, the South End and in Provincetown.

298 Commonwealth Ave, Tandem pkg space, sold $560K
298 Commonwealth Ave, Tandem pkg space, sold $560K

$560,000 buys you a tandem parking space in Boston’s Back Bay.  This was all the news this past week.  You can just imagine what people in the Midwest, or really anywhere else thought when they saw this story.  That Bostonians are Bonkers? Well…everything is relative.  Someone wanted these tandem spots pretty badly, and they could afford $560,000 to buy them

 

 

 

 

 

54 W Vine St #A, asking $569K, 2B/3B, 1,248 sf
54 W Vine St #A, asking $569K, 2B/3B, 1,248 sf

54 W Vine Street #A in Provincetown’s West End is a wonderful 2 bedroom, 3 bathroom condo with parking.  It just went under contract with an asking price of $569K. This is the 3rd condo that has sold in the last 18 months in this very well run and attractive complex. This condo represents the best of the mid-market in town.

 

 

 

 

 

 

691 Mass Ave, #208, asking $570K. 1B/1B, 909 sf
691 Mass Ave, #208, asking $570K. 1B/1B, 909 sf

 

691 Massachusetts Ave is a one bedroom, one bath condo with an asking price of $570K. 691 Massachusetts Avenue is a newer condo building in Boston’s South End.

 

We all know that $560K for a parking space in the Back Bay is news. Parking is a rare commodity in the Back Bay and it certainly creates a new ceiling for parking space prices in Back Bay but doesn’t mean much for the market in general…other than adding a bit more confidence to the already very hot market.

Categories
general info

Tipping Point?

Interesting post by Scott.

“Tipping point” for housing market?

Posted by Scott Van Voorhis  June 12, 2013 08:22 AM

South End Heli ShotOK, when Realtors start talking about the market reaching a “tipping point,” it can only be bad news for buyers worried about soaring prices.

It means things are starting to get a little crazy.

As we head into summer, sales activity is soaring, with buyers spooked by rising rates and the prospect of more price hikes ahead.

 

 

More than 9,000 homes across Massachusetts were put under agreement this May, an 83 percent jump from May 2012, the Massachusetts Association of Realtors reports.

Pending sales of condos rose more than 63 percent in May, to 3,469.

Both increases where the highest recorded since MAR began tracking pending sales in 2004.

Here’s what President Kimberly Allard-Moccia, president of the local Realtors group, had to say.

“May was a tipping point as increasing prices and interest rates pushed qualified buyers to make offers that sellers accepted in great numbers,’ said Allard-Moccia, broker-owner of Century 21 Professionals in Braintree, in a press statement.

“However, we still need more homes on the market and hopefully this activity will spark potential sellers to list their homes to help meet the demand,” she added.

Tipping point?

 

Categories
analytics general info

Pending home sales jump 10.3% in one year.

Great national market recap from Tara Steele at Agent Genius.

by 

Pending home sales continue to rise.

9 Telegraph Hill. List price $2.295M Pending.
9 Telegraph Hill. List price $2.295M Pending.

Although pending home sales improved only 0.3 percent in April, according to the National Association of Realtors, contract signings actually rose 10.3 percent compared to April 2012. Pending sales have now been above year-ago levels for the past 24 months, marking a very slow but somewhat sure recovery for housing.

Regional pending home sales varied, as the Northeast and Midwest saw improvement, while the South and West both dropped. NAR reports that home contract activity is at the highest level since April 2010, immediately before the deadline for the home buyer tax credit which spurred a metaphorical gold rush on homes.

Existing home sales expected to rise to 5M

Dr. Lawrence Yun, NAR’s chief economist said, “The housing market continues to squeak out gains from already very positive conditions. Pending contracts so far this year easily correspond to higher closed home sales in 2013. Total existing-home sales are expected to rise just over 7 percent to about 5 million this year.”

“Because of inventory shortages, higher home sales will push up home values to the highest level in five years,” Dr. Yun added. NAR says the national median existing-home price should increase close to 8.0 percent and exceed $190,000 in 2013.

Sales varied according to region

Home contract activity rose 11.5 percent in the Northeast, marking a 17.7 percent increase from April 2012 and jumped 3.2 percent for the month in the Midwest, and a whopping 15.1 percent for the year.

Meanwhile, pending home sales slid 1.1 percent in the South, but rose 12.3 percent compared to April 2012. The tough spot is currently the West region which saw a 7.6 percent dip in signed contracts, pulling the region down 2.6 percent for the year.

Categories
general info

Mid-Market In Provincetown

The mid-market in Provincetown is the $400K to $800K price range.  This segment represented 45% of total sales in 2012…46% of condo sales of 166 and 39% of single family sales of 52…in other words it is where the action is. Below are 3 condos and 3 single family properties that sold in 2012. 40 Pleasant is a beautifully  renovated 2 bedroom condo in a 3 unit complex with wonderful outside space. 389 Commercial is a very special 1,384 square foot waterfront condo with vaulted ceilings and a huge  deck. 14 Meadow is a free standing condo that lives like a single family home. 3 distinctly different properties in the mid priced segment.

40 Pleasant St. 2/1, $500K
40 Pleasant St. 2/1, $500K
389 Commercial St.#6, 2/1, $575K
389 Commercial St.#6, 2/1, $575K
14 Meadow Rd. #16, $695K
14 Meadow Rd. #16, $695K

 

 

 

 

 

 

 

9 Center St. SF, 3/2, $650K
9 Center St.  SF,  3/2, $650K
290 Bradford St. 2/1, $490K
290 Bradford St. SF 2/1, $490K
8 Priscilla Alden 2/2, $800K
8 Priscilla Alden SF 2/2, $800K

 

 

 

 

 

 

 

 

Currently there are 56 properties on the market priced between $400K and $800K representing 33% of the total condo and single family properties available of 155. 

10 Washington St is a 3 bed 4 bath condo with 1,175 square feet.  145 Commercial St is in a beachfront complex in the West End. My favorite on market condo is  15 Cottage St. #9 on the pool at the Kensington Gardens complex. 1,710 sf, 3 bedrooms, separate dining room, chefs kitchen and 3 bedrooms for $594K.

The 3 single family’s shown represent some great values. 70 Race Point Rd is a 4 bedroom, 4 bath house with 2,736 square feet. 11 Willow Drive is s brand new 3 bedroom 3 bath house with 2,234 square feet . 1 Railroad Ave is a Provincetown gem and a value at $469K.

condos:

10 Washington St. 3/4, $709K
10 Washington St. 3/4, $709K
15 Cottage St #9, $594K
15 Cottage St #9, $594K
145 Commercial St #M3, $439K
145 Commercial St #M3, $439K

 

 

 

 

 

 

 

Some single family properties;

70 Race Point Rd. 4/4, $668k
70 Race Point Rd. SF, 4/4, $668k
11 Willow Dr. 3/3, $769K
11 Willow Dr. SF, 3/3, $769K
1 Railroad Ave. 2/3, $469K
1 Railroad Ave. SF,  2/3, $469K

 

 

 

 

 

 

 

 

Year to date 20 properties have sold between $400K and $800K, 11 condos and 9 single families. This represents 33% of the total sold of 60. As you can see a perfectly symmetrical market dynamic.  33% of inventory and 33% of sales.

Below are a few of these sold properties. 50 Harry Kemp Way is a spacious townhouse style 2 bedroom condo in an well established condo complex. 381 Commercial is a beachfront condo in the East End and 61  Harry Kemp Way is a magnificent new construction single family home finished with the highest quality finishes.

 

50 Harry Kemp Way, 2/2, $500K
50 Harry Kemp Way #3, 2/2, $500K
381 Commercial St. 2/2, $485K
381 Commercial St. #9,  2/2, $485K
21 Court St #4, 1/1, $435K
21 Court St #4, 1/1, $435K

 

 

 

 

 

 

 

262 Bradford St. SF, 3/2, $467K
262 Bradford St. SF, 3/2, $467K
8 Thistlemore Way, SF, 3/3, $600K
8 Thistlemore Way, SF, 3/3, $600K
61 Harry Kemp Way, 2/3, $781K
61 Harry Kemp Way, 2/3, $781K

 

 

 

 

 

 

 

 

What do these facts and figures tell you about the mid-market here in Provincetown? That it is the most active important segment in the market.  That in 2012 it was almost half of all sales in the market with the average condo in this segment selling for $539K, with 2 bedrooms, and 2 baths and 1,122 square feet. The average single family home sold for $621K, had 3 bedrooms and 2 baths and was 1,705 square feet.  As you can see from the assortment of properties shown above, the diversity of style, type, location and price in this segment is surprisingly diverse. I’ll keep reporting on interesting developments in the mid market and let you know my favorites as new properties come available.

Categories
general info

Rising Rates!

interesting post on rising rates from Scott at Boston.com

Will rising rates spur panic buying?

Posted by Scott Van Voorhis

But before the chill sets in, sales could very well go into overdrive as buyers seek to lock in rock-bottom rates before they are gone.

Interest rates have just topped 4 percent. OK, that’s still incredibly low, but up sharply from 3.4 percent at the beginning of May.

If you doubt the power of the herd mentality to drive sales and prices in the real estate market, just recall what happened back during the nutty spring of 2010 as the expiration of the home buyer tax credit loomed.

Buyers bid up prices on homes in a scramble to grab the seemingly free government money before the offer expired, often negating the value of the $8,000 credit.

Could we see some panic buying over the summer if rates keep pushing up?

Don’t bet against it.

That said, in the longer term, higher rates could put a chill on sales, especially in high-priced markets like Greater Boston, or so says Lawrence Yun, chief economist for the National Association of Realtors.

OK, NAR is not exactly the first place I look for candid insight, but I thought Yun’s observations in this Forbes piece were worth looking at.

“In Middle America I don’t see much impact since homes are so affordable,” explains Yun. “The more expensive coastal regions is where one will begin to feel the first decline or impact.” He suspects that California metro areas and east coast hubs like Boston, New York, and Washington D.C. could begin to experience slackening sales because low-interest monthly mortgage payments in these relatively pricier places have helped make homes seem more affordable to more buyers despite the fact that relative to income, principal amounts are still expensive.

Are you ready to hit the panic button? Ready to buy now and ask questions later before rates go higher?

 

Categories
analytics general info

Vacation Hotspots

Fun post by Scott from Boston.com Real Estate

HomeImage-Aerial_Provincetown

Posted by Scott Van Voorhis

Ever wonder where your neighbors are headed on vacation? If you live in Greater Boston, it’s a good bet they aren’t headed very far.

Trulia today is releasing its list of the top vacation home destinations for each major metro market, as well as nationally, based on a tally of searches on the real estate portal.

Of the top ten most popular vacation home destinations for buyers from Greater Boston, nine are on Cape Cod.

In fact, the only break from the pattern is Wells, Maine. Sorry New Hampshire, Vermont and Rhode Island, you are out of luck.

Let’s not get big heads here, though. Sure, we love the Cape, though I’d argue traffic and overdevelopment is close to wrecking the place. Just get off Route 6 in Hyannis and take a scenic drive down Route 28.

But the rest of America is not so enamored with our favorite vacation playground.

Only one Massachusetts zip code managed to make it onto Trulia’s list of the top 20 vacation home destinations across the country.

And that happens to be Nantucket, which ranks at a distant No. 20 in popularity.

The most popular vacation home destination in America, at least according to Trulia, is not Chatham or Provincetown, but rather Cape May in New Jersey, and specifically, Oceanwood, where the median price is $525,000.

Here’s Trulia list:

Where Bostonians Search for Vacation Homes

# ZIP Code Town    State         Median Asking Price
1 02649 Mashpee  MA             $419,900
2 02639 Dennisport MA            $224,900
3 02540 Falmouth MA              $549,950
4 02554 Nantucket MA             $1,799,999
5 02536 Teaticket   MA             $379,000
6 02633 South Chatham MA     $815,000
7 02657 Provincetown MA         $596,500
8 02631 Brewster MA               $439,000
9 02642 Eastham MA               $445,750
10 04090 Wells ME                  $256,670